A blockade of an access road at the Limon gold mine in Nicaragua has led owner Glencairn Gold (GGG-T, GLE-X) to shut down the mine temporarily.
The road is being blocked by some of the workforce, in a dispute over an incentive program instituted at the mine. Limon’s workforce is represented by two unions, one of which opposes extending the incentive program to the other.
The program had earlier been approved by membership of both unions after contract negotiations earlier this year. The program, which changed the mine’s production bonus structure, was part of a two-year collective agreement with each union. The company says that exclusion of one of the unions would contravene Nicaraguan labour law.
Limon produced 21,000 oz. gold in the first half of 2005 at a cash cost of US$319 per oz.
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